By paying Cash upfront an 'either or' choice for essential works is created. What else could the cash be used for? Loans are hard to get. They require meetings with the bank and are usually for large expenditures, and the administration can be complex. Leasing benefits business by giving them the product they need at an affordable fixed monthly cost. Leasing allows the customer to quickly obtain the product they need for their business with minimum administration and impact on cash budgets.
The key benefits of leasing:
Finance Examples:
(Click on the icons below to download a PDF example of a typical finance plan over different terms.)
Example based on 36 months
Example based on 48 months
Example based on 60 months
Myths about leasing:
1. Not many customers lease.....
From the times Top 100 companies to the local Doctor, lawyer and corner shop.....they all lease. We know, we have leases with them! Taken as a whole, the members of the FLA have existing agreements with:
95% of the Times Top 100 Companies**
9 out of 10 UK Chartered Accountants**
90% of Local Authorities in England and Wales**
** Sources, UK Capital Expenditure Statistical Office, Finance & Leasing Association (FLA)
2. Large companies don't lease....
All kinds of companies lease. Reality lease to small sole traders to the largest Corporation.
3. Leasing is too expensive.....
Nobody has cheaper money than Banks, Insurance Companies and Investment Houses, they still lease their equipment. Why, because leasing is the most sensible way to acquire a depreciating asset.
4. Not much leasing is performed in the UK.....
Wrong! In 2007, UK companies wrote over 28 billion in leases. The figure increases year on year.
5. Leasing only works for companies that cant afford to pay cash.....
That is simply not true. Companies lease because they have better use for their money, why spend hard earned profits on an asset that becomes worthless over its useful life. Cash reserves should be used for working capital or to be saved for uncertain times.
6. All my customers pay cash. There is no real benefit to me offering leasing.
Reality deal with many resellers who have embraced the concept of leasing and realised that offering flexible payment options have many benefits, which include:-
· Increased sales conversions - win more business
· Increased margins - discounts become less important
· Greater revenue - win more business
· Quicker payments - guaranteed to be a maximum of 72 hours following delivery
· Customer retention - hold onto your customer by tying them into an agreement
· Upgrade opportunities - win more business
Come and have a look at some of our most recent work. It's a great way to get some inspiration.